Fixed Income Q80

0. Analyst 1: If the investment horizon is short, reinvestment risk will dominate the market price risk.
Analyst 2: If the investment horizon is short, market price risk will dominate the reinvestment risk.
Which analyst’s statement is most likely correct?

  • Option : B
  • Explanation : If the investment horizon is short, market price risk will dominate the reinvestment risk.
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